Summary — HB 1540 (Calvert County) — Payment in Lieu of Taxes Agreements — Emergency Services
Status: Introduced (Calvert County Delegation); Assigned to Rules & Executive Nominations. Public hearing held 2025‑04‑30; left pending in committee and reported as having died at sine die adjournment (05‑05‑2025). If enacted, effective date: June 1, 2025.
Note: Multiple unrelated bills in other states share the number “HB 1540.” This summary addresses the Calvert County (Maryland) local law titled “Payment in Lieu of Taxes Agreements — Emergency Services.”
Purpose
- Authorize Calvert County Commissioners to use portions of revenue received under payment‑in‑lieu‑of‑taxes (PILOT) agreements (in effect on or after June 1, 2025) to fund specified emergency services organizations and programs that support volunteer fire, rescue, and emergency medical response.
Key provisions
- Adds a new Title 7 (“Emergency Services”) to the Calvert County Public Local Laws (Sections 7‑101 through 7‑104).
- Definitions:
- “First due area” — geographic area where a volunteer fire company or rescue squad normally responds.
- “Support services organization” — explicitly includes Calvert County volunteer fire companies and rescue squads, the Calvert Advanced Life Support Unit, the Calvert County Rescue Dive Team, and other county‑designated emergency entities.
- “Support services program” — includes debt service for equipment/facilities, the county Length of Service Award Program (LOSAP), volunteer recruitment and retention efforts, property tax incentive programs for volunteers, and other designated programs.
- Revenue distribution authority:
- County may distribute an amount it deems appropriate from PILOT revenue to support organizations and programs described above, for PILOT agreements effective on or after June 1, 2025.
- Generally funds are to be distributed to the volunteer fire company or rescue squad serving each first‑due area, subject to conditions.
- Eligibility and oversight conditions:
- Recipient organizations must submit an annual budget and a certified accounting of expenditures to the County Commissioners.
- Recipients must be in good standing with the State and the county Fire & Rescue Commission and maintain IRS nonprofit status (where applicable).
- Funds may be used, with governing‑body approval, for purchasing/repairing/replacing/operating/maintaining firefighting and rescue equipment and apparatus, facilities to store equipment, and training new volunteers.
- Volunteer organizations may not adopt rules restricting territorial response areas.
- Non‑governmental recipients must post a bond to the Board of County Commissioners in a penal sum set by the commissioners as a condition of receiving funds (to secure faithful expenditure).
Who is affected
- Calvert County Commissioners (decision authority over PILOT revenue allocation).
- Volunteer fire companies, rescue squads, Calvert ALS unit, rescue dive team, LOSAP, and other designated emergency‑service organizations and programs — potential new funding source and new reporting/accountability requirements.
- PILOT payers and county budget/finance indirectly (allocation of PILOT receipts rather than general fund use).
Procedural/timeline notes
- Applies only to PILOT agreements in effect on or after June 1, 2025.
- The measure was considered in committee (public hearing 04‑30‑2025) but was reported left pending and ultimately died at the sine die adjournment (05‑05‑2025). If reintroduced in a future session, substantive provisions and effective date could be carried forward.
